Does the DCA strategy inspire newbies to invest?

[Sally9256]

Well said. Sometimes we are the one delaying ourselves by trying to get everything ready before starting. I know it's good to have all that is required to have a easy going investment but as a newbie or someone that is looking ahead, your discretionary funds is enough to kick start. Waiting to secure all at a go could jeopardize your chances of securing an investment so it's an additional advantage to know about this.

Exactly, as a newbie, there are a lot thing you don’t know yet, and it you trying to know everything before you start, you will see at the end that you won’t be able to start. So for a newbie who don’t know much yet, advisably, start small, with that you won’t get that emotionally affected even when the market is dropping, as you are doing that you are also learning more about your investment.

So instead for a newbie sitting around, waiting for the perfect market, you can just use the DCA, and with that you going by the pace you want, no rush, no emotions, just you trying to accumulate as much as you can as you are learning about bitcoin.

[Different patterns]

You are right, having an emergency fund can help someone to maintain DCA for years. And that is why it's best for people to have everything set up before adopting this strategy because that will allow them to continue their DCA journey without any pressure or interruption, because their emergency funds can support them with their basic needs. Although the emergency fund might not be enough, which people still need to engage in other activities or businesses that will be used as their emergency expenses.

You don't have to have everything set out in place before starting you bitcoin investment because that may delay you accumulate and in most cases you might not even start at all, so it's more better to put your emergency funds in place alongside your Bitcoin accumulation, that way it would be a lot easier and encouraging, than waiting to first put down you emergency funds first, which might take a very long time to accomplish , and may derail your zeal to invest, so starting your Bitcoin investment right away and be putting down your back up funds alongside it is the best.

Exactly, most people always mistake this, they think they need to have emergency fund and reserve funds set aside before starting their accumulation of bitcoin, but it not like  that, all you need is to have a discretionary income and you can start. Some people even suggest that you don’t even need a steady income. Sometimes trying to get everything ready before starting delays accumulation and even sometimes not allow someone to start.

As a newbie it always advice To use the DCA strategy, and lump sum when you have boost in your discretionary income. Emergency plays a huge part in our investment but we Should not allow it to delay our investment.

Yes, you are right. waiting and trying to put everything in order it causes a lot of delay and wasting of times. I also believe that reserves funds, and emergency funds are so important must especially aspect of bitcoin, but as an investor don’t think you have to build your emergency funds before buying your first bitcoin.  Building bitcoin position ane emergency funds can work together along bitcoin investment journey. But if someone decided to keep waiting for everything to be in order, that may cause them to keep postponing bitcoin accumulation for many year’s, what I think is the best is to start with discretionary funds and invest what you think you can comfortably afford gradually.

[Grease5000]

Well said. Sometimes we are the one delaying ourselves by trying to get everything ready before starting. I know it's good to have all that is required to have a easy going investment but as a newbie or someone that is looking ahead, your discretionary funds is enough to kick start. Waiting to secure all at a go could jeopardize your chances of securing an investment so it's an additional advantage to know about this.

Exactly, as a newbie, there are a lot thing you don’t know yet, and it you trying to know everything before you start, you will see at the end that you won’t be able to start. So for a newbie who don’t know much yet, advisably, start small, with that you won’t get that emotionally affected even when the market is dropping, as you are doing that you are also learning more about your investment.

So instead for a newbie sitting around, waiting for the perfect market, you can just use the DCA, and with that you going by the pace you want, no rush, no emotions, just you trying to accumulate as much as you can as you are learning about bitcoin.

You don't have to wait until everything is perfect before taking the first step. Starting small with money you can afford to leave invested can also give you real experience and help you understand how the market behaves. Because  if you you keep waiting to have everything at once, you may end up missing opportunities. The important thing is to start within your means and build gradually as you learn.

[Ruttoshi]

DCA strategy is, afterall, just emotionless and following a set of rules. It means just automate investing a Fix amount of money into assets at a regular interval. The newbie investor would find this to be the easiest to follow. In addition, it also means "don't check on the holdings" regularly as every time you check, you will end up with a tendency to do something about it (e.g. buy more, or sell).

I don't like the idea of using automated DCA for accumulation of bitcoin overtime because it might put you on financial pressure since, you set it to a fixed amount of money. I prefer to use the manual DCA approach because that's more flexible and adjustable to meet up with the amount of discretionary income that's available at the moment you want to purchase bitcoin that week.

This is because our expenses and basic needs can vary from week to week. Sometimes, we might spend more than usual and that will reduce your discretionary income and vice versa but you have have to use what's on ground to buy bitcoin that week.

It's not a most to use a fixed amount of discretionary income to invest into bitcoin because most times, in reality it's not possible only if you are investing in a whimpy way. Some weeks, your expenses and basic needs will consume all your discretionary income, you wouldn't buy that week and wait till you get discretionary income from your next pay.

[obuoma]

Sometimes trying to get everything ready before starting delays accumulation and even sometimes not allow someone to start.

As a newbie it always advice To use the DCA strategy, and lump sum when you have boost in your discretionary income. Emergency plays a huge part in our investment but we Should not allow it to delay our investment.

Waiting for the "perfect time" to invest is just procrastination in disguise. It's fear. That perfect moment never comes. So most beginners just freeze. They do nothing. Meanwhile prices keep going up. That’s why DCA works, you start small and slow, no need to guess the price. And keep your emergency fund separate. Don’t touch it. Starting today, even with a little, beats waiting forever for the right time.

The concept of the perfect time for entering the market is most used by traders and mot investors. This is because they aim to  enter the market low and sell high and this is exactly where the major risk of trading comes because they expect profits within a short time and are not ready to give the market enough time to generate profits. The result of this approach is exactly what no investor should experience, hence, trading mindset should be avoided at all cost for the investor to be able to invest freely and hold.

[Rhow]

The situation you pointed at can only be if the investor doesn't have emergency funds or the emergency funds available is not enough, if not DCAing with a fixed amount will happen without any negative effects like you struggling to cope with your finances. Don't forget that keeping emergency funds is part of your investment goal so that when unplanned or emergency expenses comes up you spend from your emergency funds and continue DCAing.

You are right, having an emergency fund can help someone to maintain DCA for years. And that is why it's best for people to have everything set up before adopting this strategy because that will allow them to continue their DCA journey without any pressure or interruption, because their emergency funds can support them with their basic needs. Although the emergency fund might not be enough, which people still need to engage in other activities or businesses that will be used as their emergency expenses.

The DCA strategy is very effective in investing, but if you can keep an emergency fund along with the investment, it helps even more. If you have an emergency fund, you can invest when the market goes down and buy step by step. If you do not have an emergency fund, then such help is not available at that time. In that case, DCA is an important strategy. If you invest through it, the possibility of loss is low. Moreover, when it comes to investing, when a person thinks about the future and saves emergency funds, he can use them to increase his investment during bad market times. Emergency funds are basically created in such a way that they can be used only for investment. If they are kept for any other purpose, they will not be available at the time of investment, so both the DCA strategy and emergency fund are very necessary for investment.

The purpose of an emergency fund is not to invest, but rather to ensure that we can survive for a period of time/months without selling Bitcoin even if our situation gets bad. An emergency fund is a protection for Bitcoin investments. You are now earning a regular income, which may allow you to save some of your discretionary income in Bitcoin after deducting all expenses. But if you have a situation like illness, job loss, family pressure, sudden necessary expenses or income stop, then an emergency fund is needed so that you can meet your essential expenses without selling Bitcoin. But if you use the emergency fund as money to buy Bitcoin just because the price has dropped, then that protection will be weakened in an emergency.

[ASloveapg]

Sometimes trying to get everything ready before starting delays accumulation and even sometimes not allow someone to start.

As a newbie it always advice To use the DCA strategy, and lump sum when you have boost in your discretionary income. Emergency plays a huge part in our investment but we Should not allow it to delay our investment.

Waiting for the "perfect time" to invest is just procrastination in disguise. It's fear. That perfect moment never comes. So most beginners just freeze. They do nothing. Meanwhile prices keep going up. That’s why DCA works, you start small and slow, no need to guess the price. And keep your emergency fund separate. Don’t touch it. Starting today, even with a little, beats waiting forever for the right time.

The concept of the perfect time for entering the market is most used by traders and mot investors. This is because they aim to  enter the market low and sell high and this is exactly where the major risk of trading comes because they expect profits within a short time and are not ready to give the market enough time to generate profits. The result of this approach is exactly what no investor should experience, hence, trading mindset should be avoided at all cost for the investor to be able to invest freely and hold.

An investor will never think about buying and selling. They will only think about buying continuously. An investor will never wait for the right price to buy.
And so the types of an investor and a trader are completely different, and most traders actually have unrealistic expectations. They go to ruin overnight because of their unrealistic expectations. So, as an investor, do not expect anything that can bring more disappointment for you. Because when a long-term investor starts expecting quick profits after seeing the daily price fluctuations, then he deviates from his investment goal and then he transforms into a trader, and there he is in more loss than profit.

[BluebloodCXVI]

DCA strategy is, afterall, just emotionless and following a set of rules. It means just automate investing a Fix amount of money into assets at a regular interval. The newbie investor would find this to be the easiest to follow. In addition, it also means "don't check on the holdings" regularly as every time you check, you will end up with a tendency to do something about it (e.g. buy more, or sell).

I don't like the idea of using automated DCA for accumulation of bitcoin overtime because it might put you on financial pressure since, you set it to a fixed amount of money. I prefer to use the manual DCA approach because that's more flexible and adjustable to meet up with the amount of discretionary income that's available at the moment you want to purchase bitcoin that week.

This is because our expenses and basic needs can vary from week to week. Sometimes, we might spend more than usual and that will reduce your discretionary income and vice versa but you have have to use what's on ground to buy bitcoin that week.

It's not a most to use a fixed amount of discretionary income to invest into bitcoin because most times, in reality it's not possible only if you are investing in a whimpy way. Some weeks, your expenses and basic needs will consume all your discretionary income, you wouldn't buy that week and wait till you get discretionary income from your next pay.

The choice to use either automated DCA or manual DCA for bitcoin accumulation is a personal one, so none out of the both of them is necessarily superior to the other in a literal sense.

Just match your accumulation pattern to your overall cash flow volatility and psychology, that’s all that matters.

[Muba20]

It would be a good idea to slowly increase your Bitcoin holdings from your own income. I think it makes sense to invest in debt if you
don't have to pay additional interest on the debt. If the repayment period is at least 4 years. I know that you may not get funds from anyone under such conditions. If there is a possibility of getting a loan for investment, I think it is reasonable to use leverage to buy Bitcoin. Although there is almost no risk in long term Bitcoin investment, to deal with the risk, refrain from buying Bitcoin beyond your means and if you buy Bitcoin with debt have a separate and alternative payment plan.
In the case of long-term investment, there will be many great short periods when you can buy aggressively or use leverage to get decent Bitcoin holdings. I think taking out a loan to take advantage of those events is logical and a very good way to get to the additional accumulation stage of Bitcoin.

I understand what you are saying, you actually mean that not all loans are the same, if someone has a stable income, he can repay the loan. But my personal opinion is that a loan itself is not a discretionary income. Rather, a loan creates a liability on our future income. Even if your income is stable today, you may think that you will be able to repay it very soon after investing in a loan. But you should not forget that life does not always follow the same rules. Your stable income may stop, your job may go away, your expenses may increase in the future. So even if you have a stable income, investing in a loan cannot completely reduce the risk. If Bitcoin is a strong asset in the long term, you cannot completely eliminate the risk even by investing in the long term. Because in the long term, the price may not be as you expected for many years. But the loan installments will not stop during that time. The main thing is that even if the market waits, the lender may not wait. Even if you finally invest in this loan, It will bring you disaster.

[AYOBA]

So instead for a newbie sitting around, waiting for the perfect market, you can just use the DCA, and with that you going by the pace you want, no rush, no emotions, just you trying to accumulate as much as you can as you are learning about bitcoin.

Some newbies preferred to wait for the perfect market than to use the DCA to accumulate their Bitcoin, they don’t know that using the DCA is the best method in terms of accumulating Bitcoin but if where say we can wait for the perfect market means we’re not ready to achieve Bitcoin goals with others.

By the time someone is trying to rush to get Bitcoin investments is that very time they invest in wrong part. Anything in this deserves a patience and best knowledge if him/she want to be successful person in his life, but that is what a lot’s doesn’t comprehend.

[Joeboy]

An investor will never think about buying and selling. They will only think about buying continuously. An investor will never wait for the right price to buy.
And so the types of an investor and a trader are completely different, and most traders actually have unrealistic expectations. They go to ruin overnight because of their unrealistic expectations. So, as an investor, do not expect anything that can bring more disappointment for you. Because when a long-term investor starts expecting quick profits after seeing the daily price fluctuations, then he deviates from his investment goal and then he transforms into a trader, and there he is in more loss than profit.

After all that has been discussed on this very thread and beyond, I don't see why anyone would still be operating with this mindset.. Buying with the intention of selling afterwards will be very detrimental for your investment journey, infact it is very much likely to lead to a smaller portfolio and even a probable loss.. The only time when an investor should think of selling should be the period when they have achieved over-accumulation... Even when they sell at that stage, the goal shouldn't be to actually deplete their portfolio, coz doing so wouldn't be a wise choice at all..
All this are only but my own personal opinion... I don't have the power to coax anyone and so folk still remains at liberty to do whatever they think is best for their investments...But then again, as investor it isn't a good idea to settle with a short-teem mentality... In Bitcoin, investors mindset should always be long-term based..

[abaeze]

Some newbies preferred to wait for the perfect market than to use the DCA to accumulate their Bitcoin, they don’t know that using the DCA is the best method in terms of accumulating Bitcoin but if where say we can wait for the perfect market means we’re not ready to achieve Bitcoin goals with others.

By the time someone is trying to rush to get Bitcoin investments is that very time they invest in wrong part. Anything in this deserves a patience and best knowledge if him/she want to be successful person in his life, but that is what a lot’s doesn’t comprehend.

DCA is not only a very good strategy for beginners, but it is a method that is good for everyone, new and old, especially those who are interested in long-term investment and are disciplined. However, those who do not have a regular income can deposit Bitcoin in any way according to their ability below, but the money they want to invest in Bitcoin must be spendable money. Otherwise, the future of that investment will not be good.

[G_Besar]

---

Waiting for the "perfect time" to invest is just procrastination in disguise. It's fear. That perfect moment never comes. So most beginners just freeze. They do nothing. Meanwhile prices keep going up. That’s why DCA works, you start small and slow, no need to guess the price. And keep your emergency fund separate. Don’t touch it. Starting today, even with a little, beats waiting forever for the right time.

I even think those who wait for time are wasting their own time trying to move forward or move in a particular field. Because waiting for the right time is like waiting for a valuable item to be given away for free by a stranger (that's the analogy or metaphor), because time never waits for anyone to keep going as it should. So it's better to act immediately when the opportunity arises than to waste time out of fear. Because any beginner must understand that in investing, time is the most valuable thing, besides money as capital.

[Decimetre]

Some newbies preferred to wait for the perfect market than to use the DCA to accumulate their Bitcoin, they don’t know that using the DCA is the best method in terms of accumulating Bitcoin but if where say we can wait for the perfect market means we’re not ready to achieve Bitcoin goals with others.

By the time someone is trying to rush to get Bitcoin investments is that very time they invest in wrong part. Anything in this deserves a patience and best knowledge if him/she want to be successful person in his life, but that is what a lot’s doesn’t comprehend.

DCA is not only a very good strategy for beginners, but it is a method that is good for everyone, new and old, especially those who are interested in long-term investment and are disciplined. However, those who do not have a regular income can deposit Bitcoin in any way according to their ability below, but the money they want to invest in Bitcoin must be spendable money. Otherwise, the future of that investment will not be good.

The DCA strategy is a strategy of choice and even the whales use this strategy. If someone is willing to do it rightly he will not do it beyond his ability. Many people use the DCA strategy even when they do it in the form of lump sum it still represents a DCA strategy. This strategy must not be rhythmic or at set intervals but  depends on the availability of discretionary income. Bitcoin accumulation is different from other kind of investment in the sense that when you invest, you have to fight yourself off from selling due to fluctuating price. here's no other perfect time to buy bitcoin than now instead of waiting further. If you are buying regardless of the price, then you are doing DCA strategy, but if you watch the price and wait until the price has gone down before you are able to buy, then you're doing buying the Dip strategy which can also make someone to wait and waste their time before investing or they will not even invest at all.

[obuoma]

Some newbies preferred to wait for the perfect market than to use the DCA to accumulate their Bitcoin, they don’t know that using the DCA is the best method in terms of accumulating Bitcoin but if where say we can wait for the perfect market means we’re not ready to achieve Bitcoin goals with others.

By the time someone is trying to rush to get Bitcoin investments is that very time they invest in wrong part. Anything in this deserves a patience and best knowledge if him/she want to be successful person in his life, but that is what a lot’s doesn’t comprehend.

DCA is not only a very good strategy for beginners, but it is a method that is good for everyone, new and old, especially those who are interested in long-term investment and are disciplined. However, those who do not have a regular income can deposit Bitcoin in any way according to their ability below, but the money they want to invest in Bitcoin must be spendable money. Otherwise, the future of that investment will not be good.

What do you mean by spendable money in this part of your statement that I highlighted? Is there any money that is not spendable? Maybe you are saying that the money must be their discretionary income which is money they are left with after taking care of their basic needs. I must also add the correction that the DCA method is not applicable for those with irregular income, that is wrong because those that have irregular income can still use the DCA method if they take average of how their cashflow works over a know period. For instance, someone doing business should be able to have estimate of what profits he can make in six months or one year, from there the investor will be able to calculate his basic needs and set aside the discretionary income to use for his DCA accumulation.

[Proty]

An investor will never think about buying and selling. They will only think about buying continuously. An investor will never wait for the right price to buy.
And so the types of an investor and a trader are completely different, and most traders actually have unrealistic expectations. They go to ruin overnight because of their unrealistic expectations. So, as an investor, do not expect anything that can bring more disappointment for you. Because when a long-term investor starts expecting quick profits after seeing the daily price fluctuations, then he deviates from his investment goal and then he transforms into a trader, and there he is in more loss than profit.

After all that has been discussed on this very thread and beyond, I don't see why anyone would still be operating with this mindset.. Buying with the intention of selling afterwards will be very detrimental for your investment journey, infact it is very much likely to lead to a smaller portfolio and even a probable loss.. The only time when an investor should think of selling should be the period when they have achieved over-accumulation... Even when they sell at that stage, the goal shouldn't be to actually deplete their portfolio, coz doing so wouldn't be a wise choice at all..
All this are only but my own personal opinion... I don't have the power to coax anyone and so folk still remains at liberty to do whatever they think is best for their investments...But then again, as investor it isn't a good idea to settle with a short-teem mentality... In Bitcoin, investors mindset should always be long-term based..

The most important thing is to have a long term mindset while investing in bitcoin. Buying bitcoin during a dip with the hope of selling back when the price is high, may hinder the possibility of building up a good bitcoin holdings. The market will always offer opportunities to buy more bitcoin, so selling while still on the accumulation phase will make it hard for someone to have a reasonable amount of bitcoin in their holdings.
I believe investors shouldn't just sell their bitcoin without a good reason, so selling bitcoin because of price increase is a bad idea. If someone has gotten to the point that they have accumulated a reasonable amount of bitcoin , it won't be a bad idea if they decide to start taking profits from there investment but selling all their bitcoin and becoming a no coiner may not be a great idea.

[Olatundespo]

---

Waiting for the "perfect time" to invest is just procrastination in disguise. It's fear. That perfect moment never comes. So most beginners just freeze. They do nothing. Meanwhile prices keep going up. That’s why DCA works, you start small and slow, no need to guess the price. And keep your emergency fund separate. Don’t touch it. Starting today, even with a little, beats waiting forever for the right time.

I even think those who wait for time are wasting their own time trying to move forward or move in a particular field. Because waiting for the right time is like waiting for a valuable item to be given away for free by a stranger (that's the analogy or metaphor), because time never waits for anyone to keep going as it should. So it's better to act immediately when the opportunity arises than to waste time out of fear. Because any beginner must understand that in investing, time is the most valuable thing, besides money as capital.

Time will run at its own pace. It is a fair and traditional truth but an investor will determine the strategy he will use to plan his strategy through market analysis. If a person is not initially knowledgeable about long term investment and short term trading, he will be more likely to make mistakes. Waiting for opportunities means wasting time.
You yourself said that time will run at its own pace. You have to create investment opportunities yourself. There is no need to wait when you have discretionary income available at the end of the week. Even if you have financial capacity, if you wait to invest in Bitcoin, you will regret it later. Instead of waiting for its price to decrease to invest in Bitcoin, evaluate the present time. It is wiser to follow the principle of taking advantage of your financial capacity with dynamic time.

[Merit.s]

You yourself said that time will run at its own pace. You have to create investment opportunities yourself. There is no need to wait when you have discretionary income available at the end of the week. Even if you have financial capacity, if you wait to invest in Bitcoin, you will regret it later. Instead of waiting for its price to decrease to invest in Bitcoin, evaluate the present time. It is wiser to follow the principle of taking advantage of your financial capacity with dynamic time.

You don't need to be faster than your shadows to afford investing with the wrong funds. We must invest with part of our discretionary income if we want to continue with investing and hodli for long. If you don't wait till your discretionary income is available before you invest, you are only gambling and not investing. This is because if you use money for your basic needs or important things in life, you won't be able to holdi those bitcoin when the purpose of that money pops out.

You will sell your bitcoin at loss and you might even get discouraged to continue buying bitcoin and call it scam. Whereas, you are the one that invested wrongly. If you don't have discretionary income, don't buy bitcoin until, you have discretionary income.

[PhilosopherKing]

DCA strategy is, afterall, just emotionless and following a set of rules. It means just automate investing a Fix amount of money into assets at a regular interval. The newbie investor would find this to be the easiest to follow. In addition, it also means "don't check on the holdings" regularly as every time you check, you will end up with a tendency to do something about it (e.g. buy more, or sell).

I've had this encounter before with stocks and other assets. DCA works wonderfully. Even now, with BTC, I am DCA-ing regularly and not checking.

What rules are you talking about man, I am lost could you help me out? And heck no, it is not a must for person to automate their dca. If at all manually dca so you can be able to decide how much you are going to be investing ongoingly depending on the amount of discretionary to are having at that time point. And in life shit can go wrong, like a situation when person just suddenly loose their jobs. And person could stay jobless for a month only to be surviving on some stash of money that has been reserved for long.

In that time if you are using manual DCa person can be able to control if they will invest or not at that time. But if you automate it, it enters a fixed mode and just go on invest without caring of whether you even still have a job that will be bringing in discretionary income to continue

DCA is not only a very good strategy for beginners, but it is a method that is good for everyone, new and old, especially those who are interested in long-term investment and are disciplined. However, those who do not have a regular income can deposit Bitcoin in any way according to their ability below, but the money they want to invest in Bitcoin must be spendable money. Otherwise, the future of that investment will not be good.

Like wtf do you mean by spendable money, it is vague term. Person should only invest with discretionary income, and investing with any other money other than is gambling and it is not advised because it can lead to person selling after a few months of investing.

[Sally9256]

You yourself said that time will run at its own pace. You have to create investment opportunities yourself. There is no need to wait when you have discretionary income available at the end of the week. Even if you have financial capacity, if you wait to invest in Bitcoin, you will regret it later. Instead of waiting for its price to decrease to invest in Bitcoin, evaluate the present time. It is wiser to follow the principle of taking advantage of your financial capacity with dynamic time.

You don't need to be faster than your shadows to afford investing with the wrong funds. We must invest with part of our discretionary income if we want to continue with investing and hodli for long. If you don't wait till your discretionary income is available before you invest, you are only gambling and not investing. This is because if you use money for your basic needs or important things in life, you won't be able to holdi those bitcoin when the purpose of that money pops out.

You will sell your bitcoin at loss and you might even get discouraged to continue buying bitcoin and call it scam. Whereas, you are the one that invested wrongly. If you don't have discretionary income, don't buy bitcoin until, you have discretionary income.

There is a reason why it is constantly said that investing with your discretionary income is the best, you are putting in your Money into something that doesn’t guarantee return, so you using what you can afford to lose is really the best. There are people who still want to start investing as soon as possible but lack discretionary income, don’t make the mistake of using the funds that is meant for your basic needs, it will result into selling your holdings at the wrong time.
Even if you have to get an extra job to be able to invest with discretionary income, then do that, so your investing won’t look like a gamble at the end.